Avatar Energy Ltd. Announces Grant of Stock Options

CALGARY, ALBERTA--(Marketwire - December 23, 2010) - Avatar Energy Ltd. ("Avatar" or the "Corporation") (TSX VENTURE:AVG), today announces that it has granted options to purchase an aggregate of 215,552 common shares of the Corporation at an exercise price of $0.60 per share to certain directors and officers of the Corporation. The options vest at the rate of one-third on each of the first, second and third anniversaries of the date of grant and expire five years from the date of grant.

In addition, 82,530 agent's options have been exercised to bring the total issued and outstanding shares of the Corporation to 20,946,983.

There are currently 2,094,698 common shares of Avatar reserved for issuance under the Corporation's stock option plan.

The grant of the stock options is subject to TSX Venture Exchange approval.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.